Leveraging informational and relational capabilities for performance

Abstract

Purpose The purpose of this paper is to examine the antecedents and consequences of operational collaboration of a buyer and its key supplier in economic exchanges in a supply chain. Design/methodology/approach The analyses of the sample data collected from Chinese manufacturers in this study include measurement model and structural model using structural equation modeling. Findings It shows that firm IT capabilities and supplier relationship management are positively associated with operational collaboration, which in turn enhances dyadic quality performance through improved process efficiency. Research limitations/implications Drawn upon the resource-based view and social contagion theory, it explained the intention of forming an operational collaboration in a buyer – supplier relationship employing a motivation-opportunity scheme. Second, the findings greatly advance our understanding of the indirect linkage between IT capability and quality conformance of the dyads. Practical implications This study suggests that practitioners should enhance the IT capability of their firms as well as implement supplier relationship management program in the organizations so that the buying firms can exchange cost information, provide assistance and pursue joint investments with their suppliers with the facilitation of advanced IT capabilities. Social implications Emerging market manufacturers are suggested to take measures to reduce transaction cost and cycle time uncertainty for quality assurance. Originality/value First, this study empirically explored the determinants of effective operational collaboration from the lens of motivation-opportunity scheme through integrating resource-based view and social contagion theory. Second, it examined the effect of operational collaboration on dyadic quality performance for both buyers and suppliers. Third, it examined the drivers of effective operational collaboration in the context of Chinese manufacturers.